Ensuring a just and equitable transition

Climate change mitigation policies offer long-term benefits – especially for
low-income groups, women, the elderly and rural populations, who are likely
to be most affected by climate impacts. Yet – these same groups may face
short-term challenges from rising costs or reduced incomes. This chapter
reviews the distributional and labour market effects of the climate change
mitigation policies compatible with the goals of the Paris Agreement on
OECD countries. OECD economic and microsimulation modelling shows that
climate change mitigation policies can be regressive in the short term,
underscoring the need for measures to assess and offset these effects.
Although overall labour market impacts are modest, sectoral and
occupational shifts will require support, such as skills development. The
chapter also explores policy options to help households and workers, and to
ensure a fair sharing of costs and benefits of climate mitigation policies